BETHLEHEM (Oct 12) – State Senator Lisa Boscola wants to spare motorists from paying higher gasoline prices next year by preventing an automatic increase in the state gas tax from taking effect on January 1^st.

“Gasoline prices have risen dramatically over the past year,” Boscola said.  “Rising prices at the pump have squeezed family budgets all across our Commonwealth.  The least we can do is to act responsibly to prevent the next automatic increase from draining more money from the pockets of hard-working Pennsylvanians.” 

According to the Department of Revenue, the state gas tax will increase by 1.2 cents for unleaded gasoline and 1.7 cents for diesel fuel on January 1, 2006.  By law, the increase is tied directly to the annual increase in the average wholesale price of gasoline.  Pennsylvania currently has the second highest gas tax in the country. 

“Every extra penny added to the state gas tax means that motorists must pay an additional $60 million at the pump,” Boscola said.  “The price of gas is high enough already without state government pushing it even higher!”

Boscola has drafted a bill that would cap the ceiling for the average wholesale price of gasoline at its current level ($1.17).  Such a move would “freeze the formula” used to set next year’s gasoline tax and provide real relief to Pennsylvania motorists.  Recent estimates put the average wholesale price of gasoline today at well over $1.50 per gallon.

“Unlike other proposals to reduce the state’s gas tax or to suspend it temporarily, my plan will not decrease the amount of funding available to maintain our roads and bridges,” she said.  “I believe it represents a common-sense compromise.” 

Boscola has urged Governor Rendell to support her proposal and join her in calling for quick action on behalf of motorists across Pennsylvania. 

“Just because the law says that this tax increase is automatic doesn’t mean it’s inevitable,” Boscola said.  “We have three months to change the law and do the right thing.”

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(BELOW IS COPY OF SEN. BOSCOLA’S LETTER TO GOV. RENDELL.)

October 14, 2005 

Honorable Edward G. Rendell
Governor
Commonwealth of Pennsylvania
225 Main Capitol Building
Harrisburg, PA 17120                                                            VIA MESSENGER

 Dear Governor Rendell:

On January 1, 2006 the state gas tax will automatically increase because the average wholesale price of gasoline has increased dramatically over the course of this year.  Under current law (The Liquid Fuels and Fuels Tax Act, Title 75, Chapter 90) a ceiling for the average wholesale price has been set at $1.25 per gallon.  However, recent estimates put the average wholesale price of gasoline today at approximately $1.50 per gallon. 

This dramatic increase in the average wholesale price of gasoline in Pennsylvania will automatically trigger an increase the state gas tax next year.  Even a “minimal” increase of a few pennies at the pump will cost motorists in excess of an additional $100 million. 

As State Senator, I urge you to support legislation that would cap the ceiling for the average wholesale price of gasoline at its current level ($1.17) and provide some real relief to Pennsylvania motorists.   Over the past few months, rising prices at the pump have squeezed family budgets all across our Commonwealth.  The least we can do is to act responsibly to prevent the next “automatic increase” from draining more money from the pockets of hard-working Pennsylvanians. 

Sincerely,

Lisa M. Boscola
State Senator - 18^th District